Repurchases of own shares
Swedbank holds own shares to secure the commitments in its performance and share-based remuneration programmes. Remuneration is paid in the form of deferred shares with the purpose of building long-term commitment among employees through share ownership. The first transfer of deferred shares related to Swedbank’s remuneration programmes began in February 2014.
|Development holding of repurchased shares||No of shares||Dilution |
|Original amount of own shares to secure the commitment of the remuneration programmes||33 000 000|
|Transfer to employees 2014||3 249 423||0.3%|
|Transfer to employees 2015||3 148 605||0.3%|
|Transfer to employees 2016||5 328 070||0.5%|
|Transfer to employees 2017||2 897 801||0.3%|
|Current holding of own shares Dec 2017||18 376 101|
The 2017 Annual General Meeting authorised the Board of Directors, during the period until the 2018 Annual General Meeting, to resolve on the acquisition of the bank's own shares in Swedbank AB. The buyback authorisation is justified as one of several measures to give the Board of Directors the possibility to continuously adapt the bank's capital structure to existing capital needs.
Swedbank’s total holding of own shares, including the shares traded on its own account within the securities operations, shall not exceed 10 per cent of the total number of Swedbank shares.
Repurchases within the securities operations
Swedbank, as previously, needs to acquire its own shares within its securities operations in order to facilitate its securities business activities. This, among other things, enables the Bank to:
- fulfil its market-maker commitment according to agreements with certain market places, including with Nasdaq OMX Stockholm in respect of warrants in the bank;
- quote prices of the Bank’s shares to customers, as well as the share prices of other listed companies; and
- manage the risk coverage of index-linked bonds issued by the Bank as well as index baskets and warrants where the Bank is itself responsible for part of the risk coverage.
Consequently, the 2017 Annual General Meeting decided to permit the Bank’s securities operations, for the period up to the 2016 Annual General Meeting, to purchase Swedbank shares to the extent that the total holding of such shares at any given time does not exceed 1 per cent of the total number of shares in Swedbank and at a price equivalent to the prevailing market price at any given time.